Originally published on: November 28, 2024
Over 30 technology and cryptocurrency founders in the US are facing hurdles as they are denied access to banking services in what appears to be a coordinated effort known as “Operation Chokepoint 2.0.”
In a recent social media post, Tesla’s Elon Musk raised eyebrows by revealing the secret debanking of tech founders. The post included a video clip of Marc Andreessen discussing the issue on a popular podcast, shedding light on the situation.
Coinbase’s Brian Armstrong also chimed in, denouncing what he called unethical practices within the Biden administration. Armstrong disclosed that Coinbase is taking action by collecting information through Freedom of Information Act requests to identify those behind the debanking.
The controversy surrounding Operation Chokepoint 2.0 first emerged following the collapse of crypto-friendly banks earlier this year. Critics, including venture capitalist Nic Carter, view it as a government ploy to pressure banks into severing ties with cryptocurrency companies.
While the existence of Operation Chokepoint 2.0 has not been officially confirmed, industry insiders are speaking out about their struggles to secure banking services. One example is Sam Kazemian, founder of Frax Finance, who shared a concerning conversation with JPMorgan Chase regarding crypto-related accounts.
The unexpected downfall of Silicon Valley Bank, Silvergate Bank, and Signature Bank in 2023 further fueled speculation about a concerted effort to unbank the crypto industry. In response to these challenges, Andreessen threw his support behind Donald Trump in the US presidential election, citing the need for a regulatory environment conducive to crypto growth.
As the industry grapples with ongoing debanking issues, experts like Carter predict positive outcomes for crypto regulations under the Trump administration. This optimism is reflected in the rising demand for leveraged Ether exchange-traded funds since Trump’s victory, hinting at a potential rally for ETH.
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